About 68% of marketers find that refined customer experiences are necessary to edge out the competition. And, while 88% of executives might think customers are changing faster than their businesses can keep up, there's still ample opportunity to improve and retain customer satisfaction.
Customer experience is an effective KPI and is also important for positive ROI. So if you're not implementing any customer experience strategies, then your business is likely paying for it (literally) in more ways than one.
With so much at stake to ensure not just adequate but exceptional customer satisfaction, designing and implementing a positive customer experience has become more important than ever. But, if you still need some convincing, consider these 6 reasons why customer experience really does matter.
See Related: SEO Trends & Predictions For 2023: Top 10 Takeaways
Customer experience management has seen the tangible effects customer satisfaction can have on a business. Not only can positive customer experiences bolster your brand's reputation.
But it can produce some impeccable results for your business's overall revenue intake.
Totally satisfied customers contribute 2.6x more revenue than somewhat satisfied customers and 14x more revenue than somewhat dissatisfied customers.
A satisfied customer is far more likely to pay more for such a positive experience. And while customer acquisition can oftentimes be more expensive than retaining customers, the overall payout is definitely worth it in the end.
That's not to say that a great customer experience can't also help you retain customers too.
75% of customers will stick to a business that provides outstanding service.
Once customers have gone through the customer journey and come out the other end satisfied, they'll be more likely to engage in repeat purchases because they know what kind of treatment to expect.
Branching out to a new business can be scary for today's customers. With so many businesses interested in revenue alone, customers have become more weary of negative brand interactions.
But if you can set customers' expectations right off the bat with a positive experience, they'll be far more likely to return to a place of business that's treated them well.
Knowing each touch point within the customer journey is a crucial way to generate brand loyalty. After all, at each step of the customer journey, you want customers to feel like they're receiving VIP treatment.
But this isn't just about making the customer experience as exceptional as it can be. It also just makes financial sense.
52% of consumers continue to use a brand even after finding a cheaper deal elsewhere.
In fact, it's been reported that customers are more than willing to pay more for quality experiences that matter most to them:
43% of consumers would pay more for greater convenience, 42% would pay more for a friendly, welcoming experience, and 65% of U.S. customers find a positive experience with a brand to be more influential than great advertising.
When you engage customers in a positive way, they're more likely to remain loyal customers, even passing up other cost-saving opportunities that become available. If that's not the definition of customer loyalty, then we don't know what is!
Building customer loyalty can sometimes come with its own price tag. But if you factor into account how many new customers you receive from the recommendations of loyal customers, then investing in customer loyalty seems like no big deal.
84% of customers say they trust online reviews as much as personal recommendations.
When it comes to advertising, word-of-mouth really remains the top marketing strategy for getting new customers in the door. Not to mention the fact that positive customer experiences also add credibility to your brand.
Now more than ever, customers want to see existing customer data before investing in a new brand. This means that featured customer testimonials on your website can do far more for your conversions than any paid advertising campaign.
Even as an SEO company, we recognize the value of the customer experience. That's why our SEO efforts are coupled with our unique Search & Discover Roadmap that helps you identify your customer avatar and target the most profitable search terms based on your unique clientele.
From 2020-2021, we managed to 35x one luxury beauty company's organic visitor growth, resulting in 605 unique organic sales in 10 months and ranking them for 6,500 keywords in Google's Top 100 results.
But those numbers only matter when you build customer loyalty around them. Approaching SEO with this holistic attitude is what has made our 35+ years of experience all the more effective.
Because we understand that SEO is a huge part of the customer experience. And that a great customer experience can do wonders for your brand like nothing else will.
While we've discussed how the customer experience can impact your company's finances, we haven't gotten into the negative side of this debate.
That's a whole lot of dough to lose out on just because you decided to divert your efforts elsewhere. But that kind of loss doesn't have to exist if you build customer loyalty, even if from the ground up.
These kinds of losses can also reflect negatively on your customer experience.
After one bad experience, 61% of customers would switch to a competitor. And after two bad experiences, 72% percent are out the door.
But this doesn't just end with you losing their business. This can spiral as far as that customer is willing to go whether that means they leave a negative review on your website or actively discourage others from buying from you in the meantime.
We already determined that word-of-mouth marketing remains the most effective marketing strategy out there. So make sure that those mouths are talking up your brand, not talking trash and leaving you with depleted sales.
Customer lifetime value (CLV) is one of the best ways to view your brand from a bird's eye perspective. Measuring just how much profit you can generate off of one customer over time gives you a better understanding of how the customer experience informs customer loyalty.
64% of organizations believe that customer experience is the best strategy for improving CLV.
And one of the best ways to grow CLV is by making sure your customers shop more frequently. This means engaging with customers to optimize the customer experience even after they've made a purchase.
Because customer experience doesn't just end with a successful purchase. It's a committed relationship you maintain with the customer over time.
Much like SEO, customer experience plays the long game. But it sets up the best foundation for your business to see sustainable growth year after year.
80% of leaders plan to increase their customer service budgets over the next year. But just as the old adage goes, "You have to spend money to make money." And make money they will.
Highly engaged customers buy 90% more frequently, spend 60% more per transaction, and have 3 times the annual value compared to other customers.
So even though organizations are investing more in their customer experience strategies, they're ultimately seeing a greater ROI overall. In 2023, it's not enough to hope that customers will find your brand satisfactory.
You need to actively invest in strategies that will make them feel like royalty while browsing through your website. Ultimately, this kind of customer experience can help you build even more credibility amongst your customers.
Because they know to expect great experiences from you. As we've seen from the statistics above, the customer experience far outweighs the cost of the product for many customers.
So, as you go about devising your business's overall strategy for the rest of 2023, consider how you're ranking customer experience into the mix. You may want to nudge it a couple of pegs higher than you think.
At Up Inc., we've seen the amazing gains a positive customer experience can provide businesses. And not just from a financial standpoint, but from an SEO standpoint as well.
When addressing each touchstone of the customer journey, SEO plays a huge role in how customers interact with and navigate your website. So if you want to improve the customer experience from all sides, then you'll want to work with an SEO company that understands the importance of customer satisfaction.
Up Inc. eCommerce Agency is a digital marketing agency based in Los Angeles, CA. Founded in 2021, Up Inc. specializes in eCommerce, generating growth for brands by focusing on visibility, customer loyalty, and digital revenue. For more SEO tips and industry insights, follow us on Facebook, Instagram, and LinkedIn.